Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎30v] (62/284)

34
C. 98035/32 [No. 110].
No. 48.
COLONIAL OFFICE to ME. H. E. BALLAN H NK.
g IR Downing Street, 26th October, 1932.
1 am directed by Secretary Sir Philip Cunliffe-Listei l . e ^ eI ^ annlication
of the 23rd August* and to subsequent correspondence, regarc mg | J from
of the Bahrein Petroleum Company for an extension of their piospec ihl 1
the 2nd December, 1933, to the 2nd December, 1934, and to mform you that His
Majesty's Government are not at present prepared to advise ie ^ a ' 1 10 tl
to grant an extension of the licence beyond the 2nd December, 193o.
1 2. His Majesty's Government will, however, be willing to reconsider the question
at a later time, say in April, 1933, should the Company still desiie a ceitam cx ension
of their prospecting licences, but, in that case, detailed information of the piogiess
made and of the Company's immediate drilling programme should accompany any
application of this nature that may be made.
I am, &c.,
J. E. W. FLOOD
C. 98035/32 [No. 138].
No. 49.
T he BAHREIN PETROLEUM COMPANY, LIMITED, to COLONIAL OFFICE.
S ir . 19, Moorgate, London, E.C^, 25th November, 1932.
I would refer further to your letter of the 26th October, 1932. t
2. In regard to paragraph 2 of such letter, this Company cannot concede to
the Shaikh of Bahrein the right to publish particulars of the total annual output of
crude oil and natural gas. In the view of this Company, it is felt that such a provision
might, in certain circumstances, embarrass it very seriously in its trading operations,
as giving to competitors information which would be harmful to the trading interests
of this Company.
3. This Company raises no objection to the Shaikh of Bahrein publishing such
figures as he may be required by law to publish from time to time. It was to this
end that I was instructed to add to the so-called Measurement Clause, the words :—
" Such accounts shall be treated as confidential by the Shaikh, with the
exception of such figures therein as he may be required by law to publish."
In view of the foregoing explanation, it is hoped that the asked-for addition at
the end of the provisions for the measuring and checking of oil, will be withdrawn.
4. Concerning Clause 4 of your letter under reply, the Compam agrees the
proposed addition, reading :—
Except foi payments in respect of royalty which shall become payable
under Article IX of the second Schedule to this Agreement in respect of oil won
in excess of 100 tons . . ."
to Article VI of the main Agreement.
5. As to Clause 5 of the said letter, it is appreciated that the agreed provisions
for measuring and checking of oil must be inserted also in the third Schedule i e in
the form of Mining Lease: to be granted when the time comes for that
6 This Company, however, views with alarm the suggestion contained in such
letter that the exact terms of certain consequential amendments to the Minino- I e'ise
which will probably be entailed by the adoption of the said provisions for measuring
and checking of od, be considered when the Mining Lease is being aranted to thl
Company. b "
1. 'This Company feels that although such is not the contention of His Maiestv's
Government this would in fact, leave the form of the Mining Lease open to dL
mission at the time the Company proposed to take it up. This, whether it be in he
favour of the Company or not, certainly involves present uncertainty as to the exact
form of the Mining Lease. From a practical working point of vW • f
cannot be all owed to prevail. In the view of this SoZjS
* No. 37.
t No. 47.